When planning for retirement, one of the most important questions you can ask is: Is my financial advisor truly working in my best interest? That’s where the concept of a fiduciary comes in.
At Cardinal Advisors, both Hans Scheil and Tom Griffith are CFP® professionals. Becoming a Certified Financial Planner™ is not just a title—it involves rigorous exams, years of experience, and a professional commitment to ethical standards. And with that title comes a very real responsibility: fiduciary duty.
What Is a Fiduciary?
A fiduciary is someone who is legally and ethically bound to act in the best interest of their client. According to the CFP Board:
“At all times, when providing financial advice to a client, a CFP® professional must act as a fiduciary and therefore act in the best interest of the client.”
That means that when you work with a fiduciary, your needs come first—above the interests of the advisor or their firm. But in the real world, we understand that there are often three sets of interests at play: yours, your advisor’s, and the firm’s. Being a fiduciary means always putting the client at the center.
Why This Matters
When financial professionals are not held to a fiduciary standard, it can lead to misaligned advice—products or strategies that serve the advisor more than the client. That’s why fiduciary duty is so important: it establishes trust and ensures your plan is built around what you need, not what someone is trying to sell you.
The Three Core Fiduciary Duties
CFP® professionals must uphold three key duties:
1. Duty of Loyalty
The advisor must always place the client’s interests above their own or their firm’s. While conflicts of interest may arise, a fiduciary must:
- Avoid conflicts whenever possible
- Disclose conflicts clearly when they exist
- Obtain informed consent
- Manage those conflicts properly
For example, at Cardinal Advisors, we do sell insurance products—and that creates a conflict, because commissions are involved. But we disclose that openly and make sure it doesn’t drive our recommendations. We shop across multiple companies and products to find what is best for your situation.
2. Duty of Care
This means acting with skill, diligence, and prudence, tailored to your goals, risk tolerance, and financial circumstances. It starts with getting to know you—your objectives, your comfort with risk, and where you are in life.
At Cardinal Advisors, we also invest heavily in continuing education, including our participation in the Ed Slott Master Elite IRA Advisor Group. Staying up-to-date on complex tax laws helps us provide thoughtful and informed advice that reflects your needs.
3. Duty to Follow Client Instructions
Ultimately, this is your money. Our job is to follow your reasonable and lawful directions. If something seems unclear or unwise, we’ll explain our concerns—but your goals remain the guiding force.
This plays out often in investment management. If a client wants to buy or sell a certain asset that may not align with their plan, we’ll offer our perspective. But if you decide to move forward, we will implement your wishes, so long as it’s legal and reasonable.
Fiduciary Duty in Comprehensive Financial Planning
Fiduciary responsibility is woven into every aspect of our work:
- Social Security: Helping you time your filing decision based on what’s best for you.
- Medicare: Guiding you through the decision between Medicare Advantage and Supplement plans, factoring in IRMAA where applicable.
- Long-Term Care: Recommending whether long-term care insurance is appropriate for you—and if so, which kind.
- IRA & 401(k) Strategy: Advising you on distributions, Roth conversions, and tax-smart withdrawals.
- Income Planning: Designing guaranteed lifetime income streams tailored to your unique situation.
- Estate Planning: Recommending tools like life insurance when it benefits your heirs—not when it benefits a salesperson.
Final Thoughts
Being a fiduciary means more than just wearing a title. It means putting in the work to understand your goals, constantly studying to stay sharp, and always placing your best interest above all else. At Cardinal Advisors, that’s the standard we hold ourselves to every day.
